Discretionary fiscal policy and sovereign risk
Gabriel Montes and
Iven Valpassos
Economics Bulletin, 2018, vol. 38, issue 3, 1343-1365
Abstract:
The quality and magnitude of public spending is a central concern for those who want to have an assessment of the risk implied in the sovereign bonds of a country. In this paper, we investigate the effect that discretionary fiscal policy, measured by the Fiscal Impulse, may have on the sovereign risk. Using data comprising the period from March 2004 to December 2016, we have found evidence that the adoption of discretionary fiscal policies affects the Brazilian sovereign credit risk. Additionally, there is evidence that for the period under analysis, the Brazilian sovereign risk was determined by internal factors and not by global conditions.
Keywords: fiscal impulse; sovereign risk; Credit Default Swap; EMBI (search for similar items in EconPapers)
JEL-codes: E6 H3 (search for similar items in EconPapers)
Date: 2018-07-18
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)
Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I3-P128.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-18-00081
Access Statistics for this article
More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().